EX-99.1 2 dex991.htm PRESS RELEASE Press release

Exhibit 99.1

 

Contact:    John Leness
     General Counsel
     253-850-3500

 

FLOW INTERNATIONAL ANNOUNCES FINAL FISCAL 2006 FIRST QUARTER RESULTS

 

KENT, Wash., December 2 , 2005 – Flow International Corporation (Nasdaq: FLOWE), the world’s leading supplier of ultrahigh-pressure waterjet products, yesterday reported results and filed the Form 10-Q for its fiscal 2006 first quarter ended July 31, 2005.

 

FLOW had previously announced preliminary first quarter financial results on September 15, 2005. Compared to the previously announced results, the Company has made adjustments to cost of sales, operating expenses and to items below the operating income line. The effect of these adjustments, compared to the previously announced preliminary results, is shown below. The adjustments did not impact previously announced sales or cash flows for the quarter.

 

    Operating income decreased by $508,000 to $1.9 million.

 

Net income decreased by $686,000 to $22,000 and earnings per basic and diluted earnings per share decreased from $0.02 to $0.00. This decrease was primarily the result of the recording of additional costs related to the disposition of Avure, contracts in progress, and compensation expense.

 

Final results for the fiscal 2006 first quarter ended July 31, 2005 are reported in the financial tables that follow.

 

With the filing of its Form 10-Q, the Company will again be in compliance with NASDAQ listing requirements.

 

About Flow International

 

Flow International Corporation is the world’s leading developer and manufacturer of ultrahigh-pressure waterjet cutting technology to industries including automotive, aerospace, job shop, surface preparation, and more. For more information, visit www.flowcorp.com.

 

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Flow International Corporation

Consolidated Statement of Operations

(Unaudited)

 

Dollars in thousands, except per share data

 

     Three months ended July 31,

 
     2005

    2004

    % Change

 

Sales

   $ 49,729     $ 48,982     2 %

Cost of sales

     29,106       31,087     -6 %
    


 


     

Gross margin

     20,623       17,895     15 %
    


 


     

Operating expenses:

                      

Marketing

     8,545       7,309     17 %

Research and engineering

     2,691       2,604     3 %

General and administrative

     7,366       5,728     29 %

Restructuring

     98       —       NM  

Financial Consulting

     —         623     -100 %
    


 


     

Operating expenses

     18,700       16,264     15 %
    


 


     

Operating income

     1,923       1,631     18 %

Interest expense, net

     (798 )     (3,095 )   -74 %

Other expense, net

     (226 )     (170 )   -33 %
    


 


     

Income (loss) before taxes

     899       (1,634 )   NM  

Income tax provision

     (877 )     (706 )   -24 %
    


 


     

Net Income (loss)

   $ 22     $ (2,340 )   NM  
    


 


     

Earnings (loss) per share:

                      

Basic

   $ 0.00     $ (0.15 )   NM  

Diluted

   $ 0.00       (0.15 )   NM  

Weighted average shares outstanding (000):

                      

Basic

     34,299       15,686        

Diluted

     36,012       15,686        

 

NM = not meaningful

 

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Flow International Corporation

Statement of Operations

Operations Breakdown

(Unaudited)

 

Dollars in thousands, except per share data

 

     Three Months ended July 31, 2005

   Three Months ended July 31, 2004

     Flow Waterjet
Systems


   Avure
Technologies


    Consolidated

   Flow Waterjet
Systems


   Avure
Technologies


   Consolidated

Sales

   $ 41,986    $ 7,743     $ 49,729    $ 38,299    $ 10,683    $ 48,982

Cost of sales

     24,252      4,854       29,106      24,326      6,761      31,087
    

  


 

  

  

  

Gross margin

     17,734      2,889       20,623      13,973      3,922      17,895

Operating expenses

     15,568      3,132       18,700      12,940      3,324      16,264
    

  


 

  

  

  

Operating income (loss)

     2,166      (243 )     1,923      1,033      598      1,631

 

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Flow International Corporation

Supplemental Data

(Unaudited)

 

Dollars in thousands

 

     Three months ended July 31,

 
     2005

   2004

   % Change

 

Divisional revenue breakdown:

                    

Flow Waterjet Systems:

                    

Systems

   $ 28,721    $ 25,900    11 %

Consumable parts and services

     13,265      12,399    7 %
    

  

      

Total

     41,986      38,299    10 %

Avure Technologies

                    

Fresher Under Pressure

     2,337      3,868    -40 %

General Press

     5,406      6,815    -21 %
    

  

      

Total

     7,743      10,683    -28 %
    

  

      
     $ 49,729    $ 48,982    2 %
    

  

      

Geographic revenue breakdown:

                    

United States

   $ 28,954    $ 26,979    7 %

Rest of Americas

     4,181      4,895    -15 %

Europe

     10,826      10,757    1 %

Asia

     5,768      6,351    -9 %
    

  

      
     $ 49,729    $ 48,982    2 %
    

  

      

Depreciation and amortization expense

   $ 1,165    $ 1,322    -12 %

Capital spending

   $ 519    $ 329    58 %

 

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Flow International Corporation

Condensed Balance Sheet Data

(Unaudited)

 

Dollars in thousands

 

     July 31,
2005


   April 30,
2005


   % Change

 

Cash, including restricted cash

   $ 17,746    $ 13,445    32 %

Receivables, net

     28,047      38,325    -27 %

Inventories

     26,034      24,218    7 %

Total current assets

     80,366      84,666    -5 %

Total assets

     112,512      118,467    -5 %

Total debt

   $ 17,617    $ 19,147    -8 %

Total liabilities

     82,156      87,356    -6 %

Total shareholders’ equity

     28,178      28,710    -2 %

 

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